On the same day as the devastating Boston Marathon bombings, there's a troubling trend on the U.S. stocks market — a steep decline in commodity prices, worse-than-expected data on growth from China and the U.S have resulted in the sinking of U.S. stocks.
The Wall Street Journal reported on the what is occurring within the American stock market and its losses thus far:
The Dow Jones Industrial Average gave up 188 points, or 1.3%, to 14767. The Standard & Poor's 500-stock index slipped 26 points, or 1.6%, to 1563, and the Nasdaq Composite Index fell 72 points, or 2.2%, to 3223. Declines in commodity-linked sectors far outpaced losses in other sectors on Monday. Materials and energy shares declined 3.8% and 3.7%, respectively. Mining company Freeport-McMoRan Copper & Gold FCX -8.24% was the biggest decliner in the S&P 500, shedding 8.8%.
Due to this fall in stocks value, the Nasdaq Composite fell more than 2-percent on Monday.
As for the status of U.S. Treasuries, Barrons reported that they have been higher for most of the day. Around 3 p.m. (when reports of the Boston Marathon explosions began pouring in), Barrons noted that " while Treasuries have retained their gains from earlier in the day there hasn't been a further surge into government debt since those reports. The 10-year note is up 7/32 to yield 1.695% Monday afternoon, per Tradeweb data, while the 30-year bond is up 25/32 to yield 2.878%."
The VIX was down 0.18 points, or 1.47 percent, to 12.06. It had climbed to 13.12 in the morning and remained positive right through the close but once again collapsed in the final 15 minutes after the bell. (The VIX trades until 4:15 p.m. ET.) The VIX futures were down or flat all day. The April futures lost 0.45 points, or 3.4 percent, to close at 12.70. The May futures fell 0.35 points to 14.15. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 1.87 percent to another new all-time low of 18.35. The VIX options traded 519,000 contracts, with calls slightly outpacing puts. The VVIX Index--which measures the implied volatility of those options--was down 1.2 percent to 82.39, suggesting that selling dominated the action. This means that traders were willing to sell volatility, and the volatility of volatility, even as the market fell.
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